Relations Between India and Canada

Relations between Canada and India are bilateral and are also known as Indo-Canadian relations or India-Canada relations. Canada and India have been friends for a long time and share common things like democracy. Many people from India have moved to Canada, making up more than a million people as of 2022.

India and Canada have had diplomatic ties for a long time and share democratic traditions. With an estimated one million Indians living abroad as of 2022, India has emerged as one of the main immigration sources to Canada. India and Canada’s bilateral commerce has increased considerably in recent years, and it is expected to reach $8.16 billion in 2023.

In this article, we will look into the Relations Between India and Canada, bilateral ties, along with trade, economic and political, educational, and cultural relations between India and China in detail.

About Relations Between India and Canada

Long-standing bilateral relations between Canada and India are based on their common values of democracy, pluralism, and close interpersonal ties. Growing official talks, agreements, memoranda of understanding, and working groups between Canada and India strengthen their longstanding cultural and political links. The value of bilateral trade between the two nations was C$4.14 billion in 2009.

The two countries’ relations deteriorated in December 2020 when Canadian Prime Minister Justin Trudeau expressed his disapproval of the farmers’ protests in India. That was regarded as interference in India’s domestic affairs. The Canadian high commissioner to India, Nadir Patel, was then called by the Indian foreign ministry on December 4. It did not, however, have any lasting effects on Canada’s relations with India.

The Brampton Tableau Incident and Its Effect on India-Canada Relations

The Brampton tableau showed a wounded woman with soldiers pointing weapons at her, imitating India’s former prime minister Indira Gandhi, and was on display during a pro-Khalistani demonstration in Brampton, Canada in June 2023. There were questions regarding the nation’s dignity highlighted by the tableau that glorified taking revenge for the killing of an Indian prime minister.

Political Relations Between India and China

India and Canada have a strategic alliance focused on democratic and pluralistic ideals. The two countries have been attempting to enhance their bilateral cooperation in areas of shared interest.

India and Canada have several signed agreements, such as:

• Treaty on Mutual Legal Assistance: Approved in 1994 and put into effect in 1998.
• Treaty on Extradition: Adopted in 1987.
• The Double Tax Avoidance Agreement (DTAA): It was signed in 1989 and became operative in 1997. Through this treaty, people who live in one nation but get income from another are protected from paying taxes on the same income twice.
• Agreement for Audiovisual Co-production: Signed in 2014.
• Social Security Agreement: Signed in 2015.

Also, India and Canada are looking into the signing of a Foreign Investment Promotion and Protection Agreement (FIPA) and a Comprehensive Economic Partnership Agreement (CEPA).

Trade Relations Between India and China

The trade relationship between India and Canada has increased significantly in the last few years. The bilateral services trade between Canada and India was $5.49 billion in 2020. The two countries’ bilateral trade reached $8.16 billion in 2022–2023. India ranked as Canada’s tenth-largest trading partner in 2022, with trade exceeding $13.7 billion.

Even though Canada and India have a cordial relationship, trade between the two countries is not as high as it could be. In 2014, bilateral trade between the two was C$5.77 billion (as opposed to C$56 billion between China and Canada). However, over the previous five years, total trade between the two has grown steadily. To improve trade relations, Canada and India are currently holding negotiations on the Comprehensive Economic Partnership Agreement (CEPA).

Exports and Imports Between India and Canada

India’s top exports and imports to Canada include:

Exports	Imports
Pharmaceuticals Jewelry Coal, coke, and briquettes Fertilizers Iron and steel Lentils	Pulses Timber Pulp and paper Mining products

Economic Relations Between India and Canada

More than 1,000 Canadian businesses are looking for commercial possibilities in the Indian market, and over 400 Canadian enterprises already have a presence in India.

Several well-known Indian corporations have made investments in Canada, including ICICI Bank, State Bank of India, Mahindra Tractors, Zee Group, Aditya Birla Group, Jubilant Life Sciences, Infosys Technologies Limited, Tech Mahindra, ESSAR Steel Algoma Inc., IFFCO Canada Enterprise Ltd., Abellon Energy Inc., Wipro Technologies, Jaguar Land Rover, Tata Communications, and Polaris Financial Technologies.

Educational Relations Between India and China

The Shastri Indo-Canadian Institute (SICI) was established in the field of education in 1968 with the primary goal of developing academic links between academic institutions in the two countries by sponsoring research. As of right now, the Institute has 50 member universities from India and 40 from Canada.

• India has emerged as Canada’s leading source of international students, with 203000 studying there.
• The MoU on Higher Education (2010) was renewed in 2018, with a focus on faculty and student mobility.
• Within the context of the Global Initiative of Academic Works (GIAN) initiative, 69 faculty members from Canada have been to India.
• The Scheme for Promotion of Academic and Research Collaboration (SPARC), which aims to enhance research ecosystems in India’s higher education establishments, includes Canada as a member.
• India and Canada may collaborate on education and culture due to the Shastri Indo-Canadian Institute (SICI).
• The goal of the Canada-India Research Center, IC-IMPACTS, is to promote research partnerships between India and Canada.
• In honor of the 550th anniversary of Guru Nanak Devji’s birth, a Canadian university established a chair in his honor.

India and China Relations on Science and Technology

India and Canada have signed several research and technology-related agreements, such as:

• Science, Technology, and Environment Cooperation Agreement Natural Resources of Canada for Science, Technology, and Innovation Cooperation.
• Statement of purpose to implement Collaboration in illness, the Department of Biotechnology, Ministry of Science and Technology, and Grand Challenges Canada.
• Canada and India have long understood how important it is to collaborate in science and technology to promote economic growth and innovation. An agreement to cooperate in science, technology, and innovation was signed by the two countries in 2018.
• The Department of Science and Technology of the Indian Government and the Natural Sciences and Engineering Research of Canada co-lead the research and development partnership.

Cultural Relations Between India and China

The long-standing bilateral relationship between India and Canada depends on the two countries’ shared democratic values, strong people-to-people exchanges, and diversity in terms of culture, ethnicity, and religion.

• In 1947, India and Canada established diplomatic ties. An expanding web of formal discussions, agreements, memoranda of understanding, and working groups serves to strengthen the political and cultural links between the two nations.
• Since 1968, India and Canada have been collaborating on education and culture through the Shastri Indo-Canadian Institute (SICI), a binational organization. With offices in Canada and India, SICI is a partnership of 120 universities and other higher education and research institutes.
• Diwali celebrations have been held on Parliament Hill for over ten years.
• In 2017, Canada Post and India Post collaborated to design a commemorative stamp for Diwali.

India-Canada Relations on Space Agencies

In the areas of space exploration and use, the Indian Space Research Organization (ISRO) and the Canadian Space Agency (CSA) signed two Memorandums of Understanding (MOUs) in October 1996 and March 2003.

• ANTRIX, the commercial arm of ISRO, has launched several nanosatellites from Canada.
• On January 12, 2018, as part of its 100th Satellite PSLV flight, ISRO launched Canada’s first Low Earth Orbit (LEO) satellite from the Indian spaceport Sriharikota, Andhra Pradesh.

Defense and Security Relations Between India and Canada

India and Canada collaborate closely in international fora, particularly through the Commonwealth, UN, and G-20. Regarding counterterrorism, there is strong cooperation, primarily under the Joint Working Group on Counter-Terrorism framework.

Challenges in India-Canada Relations

The following are some of the challenges posed in front of the two countries in bilateral ties:

1. Separatism with Khalistan

Sikhs make up a significant amount of the Indian diaspora in Canada, making up just over 500,000 people, or less than 1% of the nation’s total population. In India-Canada relationships, the existence of Sikh separatist groups in Canada has become a more divisive topic. Even though Sikh violence has substantially decreased in India, concerns about the revival of the Khalistan cause still exist.

In addition, the Sikh diaspora in Canada has a significant impact, especially on the federal politics of the provinces of British Columbia and Ontario.

2. Statements from Canada Regarding Indian Development

Statements made by Canada about events in India, especially those about freedoms and rights, could cause problems diplomatically.

3. India’s Structural Challenges

India is facing persistent structural obstacles to its economic progress, such as complex labor laws, market protectionism, and bureaucratic rules.

Recent News on Relations Between India and Canada

• Canadian Prime Minister Justin Trudeau noted a change in India’s tone with Ottawa after the United States warned New Delhi about a potential security threat. This development suggests a possible shift in diplomatic relations between India and Canada
• Canada is reportedly grappling with the effects of deteriorating relations with India and China. This situation presents challenges for Canada in terms of standing up to powerful nations without sacrificing economic interests
• India has reportedly resumed e-visa services to Canadian nationals, indicating a thaw in India-Canada relations. This resumption comes after a two-month pause and is a positive step towards improving bilateral ties.

Conclusion on Relations Between India and Canada

Trade, military, space, and education are all aspects of India-Canada diplomatic relations, which are based on strong people-to-people relationships and shared democratic principles. A Comprehensive Economic Partnership Agreement is what both countries are aiming for (CEPA). Sikh militancy has decreased in India, yet there are still challenges, such as Sikh separatist movements in Canada. India still faces persistent structural obstacles, such as labor regulations and complex markets. Even with improvements in trade relations, Canada continues to be India’s least important trading partner. For a more fruitful partnership, both nations should work to improve their mutual understanding and investigate India’s investment potential.

FAQs on Relations Between India and Canada

Does India have good relationship with Canada?

India and Canada have had diplomatic ties for a long time and share democratic traditions. As of 2022, the Indian diaspora will number over a million, making India one of the leading immigration source nations to Canada.

What does India import from Canada?

Over half of India’s total lentil imports came from Canada during the 2022–2023 fiscal year, which concluded on March 31. With shipments of 485,492 metric tons valued at $370 million, Canada was the country’s largest exporter of lentils to India.

Is Canada allies with India?

Diplomatic ties were established between India and Canada in 1947. India and Canada have had a long-standing bilateral relationship built on strong people-to-people relationships, shared democratic values, and the diversity of their respective cultures, ethnicities, and religions.

What is the Khalistan issue?

By establishing an ethno-religious sovereign state in the Punjab region named Khalistan, which means “land of the Khalsa,” the Khalistan movement aims to provide Sikhs with a homeland.

Which Indian companies are there in Canada?

Several prominent Indian corporations, such as Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra, are present in Canada. Major Canadian cities including Toronto, Vancouver, Montreal, and Calgary are frequently host to these businesses’ offices or development centers.